Topline
U.S. stock futures rose early Monday as President Donald Trump and Vice President J.D. Vance signaled they are open to a deal with China to de-escalate trade tensions, after the president threatened Friday to impose an additional 100% tariff on Chinese goods in response to Beijing’s expansion of export controls on crucial rare earth minerals.
US President Donald Trump speaks to the press before boarding Air Force One for a trip to the Middle East.
Getty Images
Key facts
In premarket trading early Monday, the Dow Futures rose nearly 1% to 46,143 points, while the benchmark S&P 500 Futures rose more than 1.3% to 6,682.50 points.
The tech-focused Nasdaq Futures index saw the biggest gain, rising 1.85% to 24,840 points.
Shares of chipmaker Nvidia rose 3.49% to $189.55 in the premarket, while rivals AMD and Broadcom rose 4.17% and 3.42%, respectively.
However, the prospect of renewed trade tensions weighed on Asian shares on Monday morning, as Trump’s tariff announcement was made after markets closed for the week in Asia on Friday.
Hong Kong’s benchmark Hang Seng index closed 1.52% lower on Monday, while the Shenzhen Composite and Shanghai Composite indexes fell 0.93% and 0.19% respectively.
What did Trump say about a deal with China?
In a Truth Social after on Sunday afternoon, Trump appeared to soften his tone against China, saying, “Don’t worry about China, everything will be fine! The highly respected President Xi just had a bad moment. He doesn’t want a depression for his country, and neither do I. The US wants to help China, not harm it!!!”
What did Vice President Vance say about a deal with China?
While it appears on Fox News’ Sunday morning futuresVance suggested Trump’s latest tariff threat was a negotiating tactic. “It’s going to be a delicate dance, and a lot of it will depend on how the Chinese respond. If they respond in a very aggressive way, I guarantee you that the President of the United States has a lot more cards than the People’s Republic of China. However, if they are willing to be reasonable, then Donald Trump is always willing to be a reasonable negotiator.”
What have Chinese officials said?
In one statement China’s Commerce Ministry on Sunday spoke out against Trump’s tariff threat, saying: “Frequently threatening high tariffs is not the right approach to engaging with China. China’s position on a tariff war is consistent: we don’t want one, but we are not afraid of it either. If the US continues to follow its own course, China will resolutely take corresponding measures to protect its legitimate rights and interests.” In response to Trump’s criticism of China’s new export controls, Beijing lashed out at what it said were US “double standards”, citing controls on advanced semiconductor exports as an example.
Important background
On Friday, Trump announced that the US would impose an additional 100% tariff on all Chinese imports from November 1, in response to Beijing’s expanded export controls on rare earths. These tariffs will be “piled on top” of existing tariffs, and the US will also place additional export controls on “all critical software,” Trump warned. The tariff threat followed a earlier message on Truth Social, in which the president described China’s export controls as a “sinister and hostile move.” Trump also indicated that these export controls meant there was “no reason” for him to meet in person with Xi. The two leaders will meet later this month on the sidelines of the Asia-Pacific Economic Cooperation Summit hosted by South Korea.
Read more
Trump accuses China of ‘sinister’ order to curb rare earth exports – threatens ‘massive’ tariffs (Forbes)
Trump says US will impose 100% tariffs on China over mineral trade dispute (Forbes)
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